Most businesses require more than one kind of insurance. Some may even be required by law. When looking for an insurance policy, choosing the most inexpensive is not necessarily your best option. Cheap coverage may leave your business exposed if named in a lawsuit, so often cheap may equate to very expensive long-term.
When it’s time to purchase the best policies for your business, consider these top tips to make sure you are getting the best deal available.
How to Find Great Insurance Deals
There are several steps you can take to lower your insurance expenses while still protecting your business and yourself.
1.Determine What Types of Business Insurance Are Needed
There are a variety of insurance policies created to protect businesses and their owners. Depending on where your business is located, a few may be compulsory, while others are optional but make good sense. Some of these might include:
- Liability insurance for property damage, bodily and personal injury, workplace accidents, or third-party injuries
- Product liability protection
- Health and life insurance for employees
- Workman’s compensation
- Unemployment insurance
- Commercial property liability and Business interruption insurance
- Commercial auto insurance for any vehicles used for your business
- Errors and Omissions or Professional Liability protection
- Directors and Officers’ protection
- Data Breach Insurance
When it comes right down to it, that’s a lot of coverage and would appear to be expensive when added up. You must determine which policies are crucial to protect you from risks and losses. Several of these types of coverage may be included in a single Business Owner Policy which generally covers damages due to theft, fire, or specific disasters.
2.Engage in Comparative Shopping
Comparative shopping is the one thing you can do to keep costs down while ensuring that you get the best protection. Shopping around will aid you in finding the best policy for the specific needs of your business.
You won’t merely be comparing premiums, but you’ll be able to compare what a policy covers, and more importantly what it doesn’t cover. The explanation for cheaper premiums will be found in the details.
Consider consulting a broker. He or she can assist you in determining what coverage your business needs and if a policy guarantees that coverage and comparing policy prices to get you the best coverage for your money.
3.Bundling Insurance Policies
Many insurance providers will offer significant discounts if you purchase more than one policy from them. Asking a potential insurance provider what type of discount the insurance company will offer if you bundle more than one policy makes good sense when it’s time to purchase.
Considering the numerous types of insurance most businesses require, you may be able to bundle commercial property insurance, commercial auto insurance, and general liability coverage together at considerable savings.
4.Consider Selecting a Higher Deductible
Not all business insurance policies will feature deductibles, but if a provider includes one, a higher deductible in the event of a claim will lower your monthly premium payments. When opting for a higher deductible, make sure you have the money set aside to pay it.
There is no point in selecting a high deductible if you won’t be able to pay it to receive your insurance payout.
5.Consider a Policy Offering Lower Coverage Limits
If you want higher coverage limits, you will pay more for increased protection. You need to assess what your risks are and select suitable protection to cover those risks. The coverage of commercial property should not exceed the value of the property.
Many policies will contain two coverage limits, a per-occurrence payout limit and an aggregate payout limit that generally refers to a period of one year.
6.Maintain a History of Good Credit
If your business maintains a good credit history and credit score, you may find providers will lower your premiums because you rate as a responsible business owner. Paying debts promptly and keeping finances in order will be viewed positively when it’s time to stipulate a policy.
7.Reduce Your Risks
If you reduce your risks, you’ll be less likely to make claims against your policy and claims cause an increase in premiums. Multiple claims may cause your provider to label your business as a high-risk enterprise. Installing security systems and eliminating hazards that can cause accidents can significantly reduce your need to file claims.
8.Update Your Policy at Regular Intervals
Businesses change constantly and the need for coverage will as well. You may need less or more, so re-evaluating your coverage can get you a better deal and ensure that you only pay for exactly what you need. Re-evaluate your risk profile so that coverage matches your liabilities.
An Added Benefit
If you are calculating other forms of savings into your costs, know that some insurance costs such as worker’s compensation insurance, commercial property insurance, liability insurance, and car insurance is tax deductible. So count this tax advantage when considering overall insurance expenses.